RDCM: Symmetrical Triangle detected on 28 Oct 2026

RDCM is forming a symmetrical triangle with a structure score of 12.0 and breakout score of 12.0, indicating a fairly balanced consolidation pattern. At $10.36, the stock sits within tight bounds—key support at $10.08 and resistance at $10.28—with volume ratio of 1.64x average, showing solid participation in recent moves. RSI at 54.2 suggests neutral momentum. The overall score of 75.0 reflects a moderate-quality setup. Multiple prior patterns (bull flag, double bottom, falling wedge) suggest price has been testing support levels. A breakout above $10.28 would confirm directional intent.

RDCM reported Q2 2026 revenues of $11.8 million, a 33.4% decline year-over-year, driven by customer deployment delays tied to higher component costs and supply constraints. The company reduced full-year 2026 revenue guidance to $57–$63 million but management notes demand remains robust with strong customer relationships and no cancellations or competitive losses. Management expects to return to double-digit percentage revenue growth in 2027. In September 2026, RDCM authorized a $20 million share repurchase program expected to remain in effect for up to 18 months. Q3 2026 earnings are scheduled for release on November 11, 2026. The deployment delays appear timing-driven rather than demand-structural, supporting the case for consolidation ahead of recovery.

A successful breakout from this symmetrical triangle would target $10.92 on the conservative estimate—representing a 5.4% measured move from current levels. Volume confirmation is critical: sustained volume above the 1.64x relative level would support upside progression. Invalidation occurs below key support at $10.08, which would signal the triangle broke lower and likely trigger continued weakness. With a win probability of 60.27%, the pattern historically favors upside, though the setup is not overwhelming. The pattern suggests modest directional clarity; breakout volume and price action around $10.28 resistance will determine follow-through.

RDCM faces near-term headline risk: Q3 earnings on November 11, 2026 (just 14 days out) could amplify volatility if results disappoint or guidance darkens further. The stock is down 18.55% over three months despite recent stabilization, and sits 38% below its 52-week high, indicating sustained weakness. Q2 saw GAAP net losses of $3.1 million versus $2.4 million in net income a year prior, signaling profitability pressure despite non-GAAP guidance. Beta of 0.43 suggests lower volatility, but supply-chain risks persist in the telecom equipment sector. The sector regime is neutral (0.08) while the broader market is bearish (-0.2), creating headwinds. Monitor for any new customer wins or deployment updates that could re-trigger selling if disappointing.

We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.